PARIS -- Alcatel (Paris: CEGP.PA and NYSE: ALA) today announced that it willdeploy an optical transmission network for PT Comunicações - a subsidiary of the Portugal TelecomGroup, the largest telecommunications and multimedia business organization in Portugal - tobroadcast the Euro 2004 football championship that begins June 12, 2004. The transportinfrastructure will upgrade PT Comunicações’ existing network capacity and open up new serviceoptions, such as video-on-demand for end-users to enjoy football matches.

Alcatel’s optical solution will connect ten stadiums located in Aveiro, Braga, Coimbra, Faro,Guimarães, Leira, Lisbon and Porto. It will provide the bandwidth availability to further supportbroadband services cost-efficiently, as well as a reliable platform providing the scalability andflexibility required to converge the fixed and mobile traffic. For international broadcast TVcompanies, this includes enhanced connectivity to PT Comunicações’ network to ensure matchbroadcasts in their respective countries. For residential users, it means the possibility to enjoy keyhighlights on their mobile handsets.

“The demand for new communication services is rapidly changing as carriers needs viableinfrastructures to support broadband service expansion without sacrificing previous investments,“said Romano Valussi, President of Alcatel’s optical networks activities. “The Alcatel optical systemsanswer both requirements by providing PT Comunicações with multi-service provisioning platformthat is cost-optimized to address the convergence of fixed and mobile worlds.“

Alcatel SA

Portugal Telecom Group